Yesterday's close above 5200 on the Nifty does bring in some positives for the index but the bears may not have surrendered their last line of defence.
As can be seen from the above chart, the correction from the April highs to 4786 has happened in a 5 swing fashion - usually an indication that it is part of a larger correction. Also, potential for a head & shoulder top exists for the Nifty if it does not push through the resistance zone (shown shaded on chart).
Hence the bears may have dropped the advantage they had since April but their last line of defence may still be in place.
The potential for a head & shoulder reversal can also be seen on S&P 500.
So until further clarity surfaces, one may either sit on their hands or may stay hedged on their short and long trades.